To support the implementation of the Global Minimum Tax (GMT) and mitigate the impact of any potential delays in the availability of fully operational filing portals or exchange relationships, jurisdictions implementing the GMT from 2024 (“2024 Implementing Jurisdictions”) have agreed a common understanding to preserve the administrative and compliance benefits of the central filing mechanism for the GloBE Information Return (GIR).
Pursuant to this common understanding, 2024 Implementing Jurisdictions have agreed to:
- Publish a list of jurisdictions expected to have a fully operational GIR filing portal in place by 31 May 2026, and
- Use mechanisms available under their respective domestic laws to waive penalties or suspend enforcement of local GIR filing obligations before the relevant GIR exchange deadline where the GIR has been centrally filed in any one of the jurisdictions identified in the published list.
Separately, the OECD/G20 Inclusive Framework on BEPS is releasing today further administrative guidance on the application of the existing Transitional UTPR Safe Harbour and has updated the Central Record for Purposes of the Global Minimum Tax.
Common understanding of jurisdictions implementing the Global Minimum Tax in 2024
Multinational Enterprise (MNE) Groups in scope of the GMT are relieved from locally filing a GIR in each jurisdiction where they operate, where such GIR is centrally filed in the jurisdiction of the Ultimate Parent Entity or a Designated Filing Entity, appropriate notifications have been filed, and the central filing jurisdiction shares the relevant GIR information with the local jurisdictions under the agreed Exchange of Information framework.
The central record of Qualified Income Inclusion Rules (QIIR) and Qualified Domestic Minimum Top-up Taxes (QDMTT) shows that 37 jurisdictions have implemented a QIIR and/or a QDMTT that applies to in-scope MNE Groups as of their 2024 reporting fiscal year. As the due date for the first GIR filings approaches, almost all jurisdictions are expected to have a fully operational portal in place for MNE Groups to timely file the GIR, however some may only be able to formally activate exchange relationships after the relevant filing deadline (and still in time for the exchanges to take place before the end of the year).
To address the compliance and co-ordination challenges that could arise in respect of the delays in the activation of exchange relationships, the common understanding reflects an agreement among jurisdictions implementing the GMT from 2024 to apply mechanisms, to the extent available under their respective domestic laws, in order to avoid adverse consequences for taxpayers, and waive penalties or not enforce their local GIR filing obligation when the GIR has been centrally filed in one of the jurisdictions that are operationally ready to support central filing. Thus, in-scope MNE Groups would not be negatively affected merely because an exchange relationship is not fully activated by the filing deadline.
Updates to the Central Record for Purposes of the Global Minimum Tax
The Central Record for Purposes of the Global Minimum Tax sets out those jurisdictions whose minimum tax legislation has completed the process for the transitional qualification mechanism and will be considered as qualified for purposes of the rule order. The central record has been updated to reflect that the Bahamas, Kenya, Kuwait and Oman have completed the transitional qualification mechanism with respect to their DMTTs. As a result, the central record now shows that 44 jurisdictions have completed the process for their IIR, and 50 jurisdictions completed the process for their DMTT and QDMTT Safe Harbour.
Administrative guidance on the application of the Transitional UTPR Safe Harbour
The OECD/G20 Inclusive Framework on BEPS has released new administrative guidance that addresses an unintended gap that arose in instances where an MNE Group with a 53-week fiscal year has its UPE located in a jurisdiction that is eligible both for the Transitional UTPR Safe Harbour, and then for the Side-by-Side (SbS) Safe Harbour or the UPE Safe Harbour for fiscal years starting on or after 1 January 2026. The guidance clarifies that such MNE Group will remain eligible for the Transitional UTPR Safe Harbour until the SbS Safe Harbour or UPE Safe Harbour applies.
For more information on the Global Minimum Tax and to access the Common Understanding, Central Record, and Administrative Guidance, visit: https://www.oecd.org/en/topics/global-minimum-tax.html.
Enquiries should be directed to the Communications Office in the OECD Centre for Tax Policy and Administration.
